Every time a war starts, someone gets

rich. And I'm not talking about

companies that make weapons. I'm talking

about companies that own ships. The same

ships that carry food, oil, and raw

materials across oceans suddenly start

earning five to 10 times more money just

because there is war somewhere. And this

is not just a speculation. From the

Russia-Ukraine War to the recent 2026

Iran War, real-world data shows that war

consistently transforms shipping into

one of the most profitable industries

operating inside global chaos. Let's

find out how. The biggest misconception

about war is that it stops economic

activity. When in reality, it reshapes

it in unpredictable and inefficient ways

that increase the cost of moving goods

across the world. For example, countries

at war still need energy, often more

than before. While countries outside the

war zone have to find alternative

suppliers to replace disrupted trade

routes, which forces cargo to travel

longer distances through more complex

paths and under significantly higher

risk, which in turn increase fuel usage

and insurance premiums. This distortion

creates what economists call friction in

global trade. And in shipping, friction

is not a problem. It is a pricing

advantage. Because shipping companies do

not earn based on efficiency alone, they

earn based on scarcity, complexity, and

urgency. And war increases all three

simultaneously.

For example, after the Russia-Ukraine

conflict disrupted Black Sea trade,

global grain shipments had to be

rerouted through alternative ports and

longer maritime paths, increasing

shipping demand even as regional trade

collapsed. Similarly, conflicts in the

Middle East have repeatedly forced

tankers to avoid critical choke points

like the Strait of Hormuz. That

increases voyage durations and

tightening vessel availability

worldwide. This means that instead of

reducing demand for shipping, war

redistributes it in ways that make

logistics significantly more expensive

and therefore more profitable. The most

direct and measurable way shipping

companies profit from war is through

explosive increases in freight rates,

which often rise within days of

geopolitical escalation. When conflict

disrupts major routes, the number of

ships willing or able to operate in

those areas drops immediately, while

demand remains stable or even increases,

creating a sharp imbalance between

supply and demand. This imbalance drives

freight rates to extreme levels. During

periods of heightened tension around the

Strait of Hormuz in 2026, tanker

earnings surged dramatically, with some

routes experiencing rate increases of

over 60% in a matter of days. In

previous crises, such as the tanker

market spike in 2019 following attacks

in the Volga region, very large crude

carriers earned more than $300,000 per

day, compared to typical earnings of

under $30,000 per day. This tenfold

increase illustrates a crucial point.

Shipping companies operate with

relatively fixed costs, meaning that any

surge in freight rates translates almost

directly into profit. A ship that costs

$20,000 per day, but earns $200,000 per

day during wartime conditions, is

generating extraordinary margins. And

when multiplied across entire fleets,

this creates billions in additional

revenue for shipping companies. Among

all sectors, oil shipping consistently

delivers the highest profits during war,

largely because energy markets are

deeply sensitive to geopolitical

instability. The Russia-Ukraine war

provides one of the clearest modern

examples of this phenomenon. When

Western sanctions restricted Russian oil

exports, traditional shipping channels

were disrupted, but global demand for

oil did not disappear, leading to the

emergence of a massive alternative

system known as the shadow fleet. This

shadow fleet consisted of hundreds of

older tankers operating outside

conventional insurance and regulatory

frameworks, allowing oil to continue

flowing to countries willing to purchase

it at discounted rates. By 2024,

estimates suggested that more than 1,000

vessels were involved in this parallel

system, representing a significant

portion of global tanker activity. These

ships often charge premium rates due to

the legal and operational risks

involved, and many were sold at inflated

prices due to sudden demand. At the same

time, oil that previously traveled short

distances within Europe began moving to

Asia, dramatically increasing voyage

lengths and further boosting shipping

revenues through higher ton-mile demand.

A similar pattern emerged during the

2026 Iran conflict, where restrictions

and military tensions forced oil

shipments to reroute or rely on less

conventional shipping networks, again

increasing costs and profits for those

willing to operate in high-risk

environments. One of the most powerful,

yet underappreciated profit mechanisms

in wartime shipping, is the increase in

ton-mile demand, which measures how far

cargo travels rather than just how much

is transported. When conflict disrupts

direct trade routes, ships are forced to

take longer paths, significantly

increasing the distance traveled per

shipment. For example, during

disruptions linked to both the

Russia-Ukraine War and Middle Eastern

tensions, some shipping routes became up

to 40% to 50% longer as vessels avoided

conflict zones or restricted waters.

This has two major effects. First, it

increases revenue per voyage because

ships are paid for longer journeys. And

second, it reduces the effective supply

of ships since each vessel is occupied

for a longer period of time, making

fewer ships available globally. This

artificial scarcity pushes freight rates

even higher, creating a feedback loop

where longer routes lead to higher

prices, which in turn generate higher

profits. In essence, war stretches the

global shipping network, and that

stretching translates directly into

increased earnings.

Another critical source of profit comes

from war risk premiums and insurances,

which allow shipping companies to

monetize danger without necessarily

absorbing its financial burden. When

vessels operate in conflict zones,

insurance providers increase premiums

dramatically, sometimes charging up to 2

to 5% of a ship's total value for a

single voyage. For a vessel worth $100

million,

this can mean millions of dollars in

additional costs per trip. However,

shipping companies rarely pay these

costs out of pocket. Instead, they pass

them directly to customers through war

risk surcharges, effectively turning

increased risk into a revenue-generating

mechanism. In some cases, even the

perception of risk is enough to justify

higher pricing, allowing companies to

increase margins without a proportional

increase in operational danger. During

the Iran conflict, insurance rates in

the Persian Gulf region reportedly

increased several times over within a

week, yet shipping companies continued

operating, transferring these costs to

cargo owners while maintaining

profitability. War also transforms

governments into major customers for

shipping companies, creating a stable

and highly profitable source of revenue

through defense and logistics contracts.

Military operations require the movement

of fuel, equipment, food supplies, and

humanitarian aid, and rather than

maintaining massive fleets, governments

often rely on private shipping companies

to handle these operations. These

contracts are typically high-value,

long-term, and backed by government

funding, making them far more secure

than commercial shipping deals. During

large-scale conflicts, these contracts

can represent a significant portion of a

shipping company's revenue, providing

guaranteed income even in volatile

markets. Historically, wartime logistics

contracts have played a major role in

boosting maritime industry profits, and

this dynamic continues in modern

conflicts where supply chain complexity

requires specialized shipping expertise.

War creates rapid fluctuations in

commodity prices, freight rates, and

regional supply-demand balances, and

companies with strong trading

capabilities can exploit these changes.

For instance, during both the

Russia-Ukraine War and Iran conflict,

European logistics companies reported

increased profits during these periods,

not simply because they transported

goods, but because they leverage market

instability to optimize routes, pricing,

and timing. This combination of

logistics and trading turns shipping

companies into active participants in

global markets, rather than passive

carriers. War also transforms the

vessels themselves, allowing owners to

sell older ships at premium prices or

use them as collateral for financing.

During recent conflicts, older tankers

that would ordinarily be nearing the end

of their operational life were sold at

premium prices due to their utility in

high-demand, high-risk routes. This

creates an additional layer of profit

beyond operational earnings, turning

ships into appreciating assets during

periods of geopolitical instability.

When you connect all of these factors

together, a clear and somewhat

uncomfortable truth emerges. War does

not stop global shipping. It transforms

it into a high-margin, high-risk, and

highly profitable industry driven by

disruption, scarcity, and urgency.

Thanks for watching, and see you in next

video.